If you use any DeFi protocol check if it uses a proxy contract


A proxy contract means the team can UPGRADE the smart contract code even after deployment
This is useful for bug fixes. But it's also a risk
If the team can upgrade the code they can change the rules at any time
They could add a function that drains all deposits
Most people check if a contract is "audited" but never check if it's upgradeable
How to check: Go to Etherscan → look for "Proxy Contract" label on the contract page
If it says Proxy: The team can change the code
If the contract is not a proxy: The code is permanent
Neither is automatically good or bad. But you should know which one it is
Putting your money in an upgradeable contract means trusting the team to never go rogue
That's a trust assumption most people don't even know they're making
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